N-CSR 1 cent47777-ncsr.txt CENTURY CAPITAL MANAGEMENT TRUST UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-09561 Century Capital Management Trust ------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) c/o Century Capital Management, LLC 100 Federal Street, Boston, Massachusetts 02110 ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Maureen Kane Century Capital Management, LLC 100 Federal Street, Boston, Massachusetts 02110 ------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (617) 482-3060 -------------- Date of fiscal year end: October 31 ----------------- Date of reporting period: October 31, 2009 ----------------- Item 1. Reports to Shareholders. logo: Century Funds CENTURY FUNDS Century Funds Annual Report October 31, 2009 Century Shares Trust & Century Small Cap Select Fund photo: skyline TOTAL RETURNS FOR THE YEAR ENDED OCTOBER 31, 2009 TICKER SYMBOL 1 YEAR ------------- ------- CENTURY SHARES TRUST ("CST") INSTITUTIONAL SHARES CENSX 8.59% INVESTOR SHARES CENVX 8.35% S&P 500 INDEX 9.80% CENTURY SMALL CAP SELECT FUND ("CSCS") INSTITUTIONAL SHARES CSMCX 11.69% INVESTOR SHARES CSMVX 11.27% RUSSELL 2000 GROWTH INDEX 11.34% Past performance is no guarantee of future results. TABLE OF CONTENTS Page Letter to Shareholders 1 Fund Summaries: Century Small Cap Select Fund 5 Century Shares Trust 8 Shareholder Expense Example 11 Financial Statements: Portfolios of Investments 12 Statements of Assets and Liabilities 16 Statements of Operations 17 Statements of Changes in Net Assets 18 Financial Highlights 19 Notes to Financial Statements 23 Report of Independent Public Accounting Firm 30 Tax Information 31 Trustees and Officers 32 THIS REPORT IS SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF CENTURY SHARES TRUST AND CENTURY SMALL CAP SELECT FUND (EACH A "FUND" AND COLLECTIVELY, THE "FUNDS"). IT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS IT IS PRECEDED OR ACCOMPANIED BY THE FUNDS' CURRENT PROSPECTUS, WHICH INCLUDES INFORMATION REGARDING THE FUNDS' OBJECTIVE(S), RISKS, AND CHARGES AND EXPENSES, EXPERIENCE OF ITS MANAGEMENT, AND OTHER INFORMATION. THE FUNDS' PROSPECTUS CONTAINS THIS AND OTHER IMPORTANT INFORMATION ABOUT THE FUNDS. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST. Investments in mutual funds involve risks. CENTURY SMALL CAP SELECT FUND concentrates its investments in the financial services and health care group of industries. Concentration in a particular industry subjects the Fund to the risks associated with that industry and, as a result, the Fund may be subject to greater price volatility than funds with less concentrated portfolios. In addition, the Fund invests in smaller companies which pose greater risks than those associated with larger, more established companies. CENTURY SHARES TRUST may invest a significant portion of assets in securities of companies within the same market sector. If the Fund's portfolio is over weighted in a sector, any negative development affecting that sector will have a greater impact on the Fund than a fund that is not over weighted in that sector. The views in this report were those of the Century Funds' Chief Investment Officer and Portfolio Managers as of October 31, 2009 and may not reflect their views on the date that this report is first published or anytime thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice. There is no assurance that the Funds will continue to invest in the securities mentioned. Foreside Fund Services, LLC, Distributor. CENTURY FUNDS DEAR FELLOW SHAREHOLDERS: A fragile optimism has taken hold over the last several months, replacing the dark storm clouds that plunged the capital markets and economy into uncertainty last year. The unbridled pessimism of 2008 (with the S&P 500 and the Russell 2000 Growth Indices both declining over 30% for the year) gave way to a relief rally, with the S&P 500 and Russell 2000 Growth Indices both up over 17% for the period January 1, 2009. It is easy for investors to become confused as the pendulum of market noise swings between fear and greed. Our investment focus gravitates toward high-quality, market leaders with strong balance sheets and cash flow that can sustain organic growth even during difficult markets. We hope this approach aligns our goal of providing attractive risk-adjusted returns over a full market cycle with the long-term financial goals of our shareholders. It is hard to believe that December will mark the 10-year anniversary of the launch of the Century Small Cap Select Fund. In the Fund's first annual report, we discussed the unwinding of excess and turmoil in the financial markets and the collapse of the internet bubble. A decade later, it seems only appropriate that we speak to the unwinding of other excesses and the anticipation of another recovery to come. This report presents our thoughts on the past one-year period and the current environment, shares our optimism for quality companies over the next few years, and provides an update on your Century Funds' investment. REPORTING VERSUS ANTICIPATING CHANGE The market volatility over the last year highlights the difference between reporting what has already taken place in the economy and anticipating future trends. Capital markets have historically been relatively efficient, and we believe portfolio decisions based on forward-looking analysis usually deliver more value than portfolio decisions based on what consensus investors already know. Our research process combines the analysis of reported information with company-specific field work, in order to anticipate whether a company's growth or valuation is being over or under estimated by the market. "I skate to where the puck is going to be, not to where it has been." -- Hockey Hall-of-Famer, Wayne Gretzky We believe we are at an economic inflection point, where market leaders and forward-thinking management teams can extend their market share, margins, and profits, over struggling competitors with less ability to reinvest in their products. Our research strives to uncover companies that have the patience and courage to manage their earnings beyond the next year by adapting to changes in their competitive arena. 1 CENTURY FUNDS October marked the first negative month of performance for both of the Funds' benchmarks since the March 9th rally commenced. The equity benchmark indices marched higher at a breathtaking pace through September. Much of this enthusiasm was driven by the credit crisis abating and corporate America's surprising ability to cut expenses rapidly. We believe that the Federal government's unprecedented fiscal (taxation and spending) and monetary (Federal Reserve Board actions on interest rates and issuing credit) intervention ensures that spending initiatives and low interest rates will grease the wheels of commerce for the next several months. Institutional investors responded to this extended government safety net and unexpected profit recovery by propelling the markets higher. This rally from the March market bottom has been characterized by a large increase in the stock prices of low priced, lower quality companies, which some believed were headed toward bankruptcy. While this occurrence overshadowed the higher quality companies we tend to favor, it served as a sign that the financial markets were stabilizing and the overall economic situation had improved. Retail investors appear to have been less inclined to embrace this stock market rally, and their assets have remained in money market funds or moved into fixed income offerings. Economic concerns still remain, and the average consumer's balance sheet and income statement are still stinging from depressed home values, reduced 401(k) balances, and an unemployment rate hovering above 10%. CONSUMER RESTRAINT AND SLOWER GROWTH Does the economic reality support the run-up in the equity markets? Our answer is yes, though it is too early to determine sustainability due to the swirling crosswinds of our current environment. The government's bailout and stimulus programs appear to have pulled the economy from its doldrums. Inflation remains tame, but our huge deficit spending and the dollar's weakness may accelerate the inflation outlook beyond 2010. According to gross domestic product (GDP) statistics, the economy grew at a rate of 2.8% in the third quarter versus a decrease of 0.7% in the second quarter. Third quarter earnings and profit guidance were encouraging, but revenue growth is proving elusive. Managements' commentary regarding the business outlook is increasingly optimistic. We note the following trends. Productivity continues to improve at a terrific pace, and businesses are resuming capital expenditures on technology upgrades that enable people to do more (data and video) with less cost and from any location. The residential housing market appears to be slowly regaining its footing, and there seems to be consensus that the recession that has affected us since 2007 is drawing to an end. We remain concerned about the financial health of the consumer, which accounts for 70% of GDP spending. The resilient American consumer appears to be unnerved by the uncertain job market and limited access to credit. October 2009 consumer bankruptcy filings increased 27.9% year-over-year. 2 CENTURY FUNDS We believe that households are watching their budgets vigilantly, and consumers are trading down to lower priced private label choices. We believe a frugal consumer with less access to credit will lead to a lower level of economic growth, a more competitive business environment and reduced opportunities for struggling firms to prosper. The following chart highlights the growing divergence between consumer spending and workers' wage income. The government has temporarily filled this gap with spending initiatives and tax credits, but there is a limit to how far spending can extend beyond income, before it adversely impacts inflation, our debt burden and economic growth. As government stimulus slows, workers will need to spend less or be paid more. We believe economic recovery will depend on the return of revenue and job growth across many industries. ARTWORK: AN UNSUSTAINABLE EARNINGS VERUS SPENDING GAP Source: BEA; Morgan Stanley Research We believe that the tight lending environment will persist, reducing credit availability further. Small businesses represent 70% of the nation's workers and have seen their credit lines reduced and interest rates increased. These actions inhibit their ability to expand their products, invest in new equipment, or hire new employees. A robust recovery will require credit growth to return and companies to begin hiring again. Our research analysts will be looking for these signs over the coming months. We believe the October downturn has marked a divergence in the markets. The low priced, low quality leadership that characterized the initial upturn appears to have run its course. We feel that higher quality companies are regaining the attention of investors as they realize that revenue growth will be essential for the market to move higher from here. Companies with strong competitive positions, margins, returns, and balance sheets should thrive and capture market share gains over the next several years. We believe market share gains will be highly correlated with earnings growth and share price appreciation going forward. Our 2008 annual report discussed our long-term focus and belief that opportunity rises out of great struggles. The divergent stock market performance of 2008 and 2009 reinforced the need for that long-term focus. CENTURY FUNDS 3 We expect the next decade will endure unexpected peaks and valleys, and we hope to be worthy stewards that can listen and learn to anticipate the changes that transpire as investment styles swing into and out of favor. The Century Funds remain committed to fundamental investing, with a focus on long-term, risk-adjusted returns. We greatly appreciate the trust and investments that you place with Century. We look forward to partnering with you through the opportunities and challenges ahead, as we seek to achieve our shared goals. We welcome your questions and comments always. Respectfully submitted, /s/ Alexander L. Thorndike Alexander L. Thorndike Chairman of the Century Funds 4 CENTURY FUNDS CENTURY SMALL CAP SELECT FUND COMMENTARY HOW DID THE PORTFOLIO PERFORM? For the one-year period ended October 31, 2009, Century Small Cap Select Fund's Institutional Shares returned 11.69%, outperforming the Russell 2000 Growth Index's return of 11.34%, while the Investor Shares' return of 11.27% slightly underperformed the benchmark. WHAT FACTORS INFLUENCED PERFORMANCE? From November 2008 to March 2009, the market declined dramatically, with the Russell 2000 Growth Index falling more than 40% from its peak in October 2007. Investors reversed course, in the spring, and stocks rebounded, rising more than 50% from the low in March. Due in large part to these dramatic shifts in the market, the Fund's performance was volatile during the year. The Fund's more defensive positioning helped performance during the first half of the year, but relative performance began to lag during the second half of the year, as the market rebound favored lower quality stocks. The Fund's performance over the past year was due to a combination of stock selection and sector allocation. Bruker Corp. (a producer of life science tools), Brookdale Senior Living (a senior living operator), and HMS Holdings (a health care cost management provider) all contributed significantly to performance. MFA Financial (a mortgage-backed REIT), Wintrust Financial (a diversified bank) and Eaton Vance (an investment manager) also provided meaningful contributions to the Fund's performance. These positive results were partially offset by weakness in Matthews International (a diversified manufacturer) and Ralcorp (a private label food producer). Underweighting the Industrials sector contributed to performance, but underweighting the Consumer Discretionary sector and overweighting the Financials sector partially offset the benefit. Underweighting the Energy sector also led to positive sector contribution, but the benefit was offset by stock selection within the sector. The biggest surprise was the strength in the Russell 2000 Growth Consumer Discretionary sector, which increased 32% for the fiscal year and was ahead of the Information Technology sector's 30% return. Consumer stocks performed very well, despite high unemployment rates and tight credit. DESCRIBE RECENT PORTFOLIO ACTIVITY. The Portfolio's exposure to the Information Technology sector and the Materials sector increased over the past year and we trimmed holdings in the Financial, Industrial, and Health Care sectors. Given the turmoil in the capital markets, we believe that the financial strength of Information Technology stocks enabled them to better manage the crisis than stocks in other sectors. As companies realigned their operations for a lower revenue base, they continued to invest in productivity-improving software and tools with the aim of "doing more with less." The recent economic stability has increased merger and acquisition activity.Two of the Fund's holdings, Avocent and Starent, are being acquired by Emerson Electric and Cisco Systems, respectively. CENTURY FUNDS 5 CENTURY SMALL CAP SELECT FUND COMMENTARY (CONTINUED) DESCRIBE PORTFOLIO POSITIONING AT PERIOD-END. We believe that the economy will continue to improve, but that the growth rate will be slower than a typical recovery. As of October 31, 2009, the Portfolio is positioned with a mix of high quality, franchise companies and well-financed, cyclical firms. Relative to the Russell 2000 Growth Index, the Fund is overweight Information Technology, Materials, and Financial Services sectors. We believe that the Materials sector should benefit as the economy rebounds while Financial Services holdings are attractively valued. Due to our concern regarding consumer spending, the Fund has a below average allocation to Consumer Discretionary stocks. TEN LARGEST HOLDINGS* Core Laboratories NV 3.48% ENERGY RESERVOIR MANAGEMENT PROVIDER PSS World Medical, Inc. 3.46% HEALTH PRODUCTS DISTRIBUTOR BJ's Wholesale Club, Inc. 3.26% WAREHOUSE CLUB OPERATOR Cornell Companies, Inc. 3.19% CORRECTIONAL SERVICES Capella Education Co. 3.18% EDUCATION SERVICES MFA Financial, Inc. 3.13% REAL ESTATE INVESTMENT TRUST Bruker Corp. 3.12% LIFE SCIENCE INSTRUMENTS HUB Group, Inc. 2.97% FREIGHT TRANSPORTATION MANAGEMENT j2 Global Communications, Inc. 2.89% ELECTRONIC COMMUNICATION SERVICES Wintrust Financial Corp. 2.61% COMMUNITY BANKING AND SPECIALTY FINANCIAL SERVICES PORTFOLIO COMPOSITION* Information Technology 27.7% Health Care 24.8% Industrials 12.7% Financials 9.4% Consumer Discretionary 9.4% Energy 5.7% Materials 4.9% Consumer Staples 4.1% Short-term investment less net liabilities 1.3% *Based on the Fund's net assets at October 31, 2009 and subject to change. 6 CENTURY FUNDS PERFORMANCE SUMMARY Century Small Cap Select Fund -- Institutional Shares and Investor Shares THE PERFORMANCE INFORMATION SHOWN BELOW IS HISTORICAL AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE FLUCTUATE WITH CHANGING MARKET CONDITIONS SO THAT, WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE SUBSTANTIALLY LOWER OR HIGHER THAN THE FUND'S HISTORICAL PERFORMANCE. PLEASE CALL (800) 303-1928 FOR THE FUND'S MOST RECENT MONTH-END PERFORMANCE. AS STATED IN THE FUND'S CURRENT PROSPECTUS, THE TOTAL (GROSS) ANNUAL OPERATING EXPENSES IS 1.50% FOR THE INVESTOR SHARES AND 1.11% FOR THE INSTITUTIONAL SHARES. RETURNS WOULD HAVE BEEN LOWER DURING RELEVANT PERIODS IF CERTAIN FEES HAD NOT BEEN WAIVED OR EXPENSES REIMBURSED. TO DISCOURAGE SHORT-TERM TRADING, THE FUND MAY IMPOSE A REDEMPTION FEE OF 1.00% ON SHARES HELD LESS THAN 90 DAYS. PERFORMANCE FIGURES AND GRAPHS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR REDEMPTION OF FUND SHARES. RETURNS MAY VARY BY SHARE CLASS. THE RECENT GROWTH RATE IN THE GLOBAL EQUITY MARKETS HAS HELPED TO PRODUCE SHORT-TERM RETURNS FOR SOME SECTORS/ASSET CLASSES THAT ARE NOT TYPICAL AND MAY NOT CONTINUE IN THE FUTURE. BECAUSE OF ONGOING MARKET VOLATILITY, FUND PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL SHORT-TERM CHANGES. -------------------------------------------------------------------------------- Average Annual Total Returns as of 10/31/09 (%)
SINCE 1 YEAR 3 YEARS 5 YEARS INCEPTION* ------ ------- ------- ----------- CENTURY SMALL CAP SELECT INSTITUTIONAL SHARES 11.69 (8.35) (1.70) 8.86 RUSSELL 2000 GROWTH INDEX 11.34 (6.88) 0.95 (4.09) RUSSELL 2000 INDEX 6.46 (8.51) 0.59 1.48
SINCE 1 YEAR 3 YEARS 5 YEARS INCEPTION** ------ ------- ------- ----------- CENTURY SMALL CAP SELECT INVESTOR SHARES 11.27 (8.66) (2.02) 8.49 RUSSELL 2000 GROWTH INDEX 11.34 (6.88) 0.95 (2.52) RUSSELL 2000 INDEX 6.46 (8.51) 0.59 3.29 Sources: Century Capital Management, LLC and Russell
-------------------------------------------------------------------------------- LINE CHART: GROWTH OF $100,000 Institutional Shares* CSCS Russell 2000 Institutional Growth Dec-99 $100000 $100000 100100 111454 101000 110416 101600 136106 111600 121800 Apr-00 111500 109502 114100 99914 116100 112821 123900 103152 132800 114002 140100 108338 Oct-00 145700 99544 143200 81470 155100 86455 153043 93453 149135 80643 141009 73311 01-Apr 148620 82286 154380 84192 160860 86488 160243 79110 157466 74170 153557 62202 01-Oct 151089 68186 157157 73877 164100 78477 163374 75685 165965 70787 174362 76939 02-Apr 175917 75275 175710 70873 167520 64863 157672 54894 160368 54869 152386 50906 02-Oct 159849 53481 169594 58782 165328 54728 163087 53242 161486 51822 164368 52607 03-Apr 173760 57585 187102 64075 194360 65309 204819 70246 210370 74020 213678 72146 03-Oct 229795 78378 242283 80934 243513 81295 255875 85566 254526 85434 253178 85833 04-Apr 244188 81524 244862 83146 253739 85913 240255 78201 236209 76518 248570 80749 04-Oct 252391 82711 263496 89702 273515 92926 265569 88740 274436 89958 274091 86583 05-Apr 266605 81073 272133 86789 279043 89595 292402 95858 286068 94507 285492 95256 05-Oct 278121 91736 286813 96930 284577 96785 301997 106121 300361 105555 308662 110686 06-Apr 308662 110366 296385 102599 292995 102661 285395 97328 290072 100179 295099 100857 06-Oct 300945 107392 311071 109963 311838 109702 316723 111743 313895 111389 320579 112418 07-Apr 326749 115365 341402 120631 338060 119936 316851 113709 323278 116569 328805 119955 07-Oct 335875 125356 315180 116699 320710 117432 292779 106659 284840 102967 286541 102368 08-Apr 297600 107628 309226 113724 290086 106945 286116 109432 296324 112150 265274 99475 08-Oct 207427 77885 192965 68460 194666 72174 177369 66683 165601 59778 176944 65144 09-Apr 194383 74948 203032 77850 210830 80372 221889 86605 224441 87450 240462 93192 09-Oct 231671 86718 Line Chart: GROWTH OF $10,000 Investor Shares** Russell 2000 CSCS Investor Growth Feb-00 $10000 $10000 10010 10472 10940 9372 Apr-00 10920 8425 11180 7688 11380 8681 12130 7937 13000 8772 13710 8336 Oct-00 14260 7659 14000 6269 15170 6652 14978 7191 14633 6205 13843 5641 01-Apr 14593 6331 15150 6478 15798 6655 15727 6087 15443 5707 15059 4786 01-Oct 14785 5246 15383 5684 16061 6038 15990 5823 16244 5447 17055 5920 02-Apr 17208 5792 17177 5453 16366 4991 15412 4224 15665 4222 14854 3917 02-Oct 15574 4115 16518 4523 16090 4211 15871 4097 15714 3987 15996 4048 03-Apr 16902 4431 18174 4930 18872 5025 19883 5405 20414 5695 20727 5551 03-Oct 22290 6031 23488 6227 23608 6255 24792 6584 24660 6574 24518 6604 04-Apr 23652 6273 23707 6397 24562 6610 23246 6017 22841 5887 24036 6213 04-Oct 24397 6364 25469 6902 26424 7150 25649 6828 26503 6922 26469 6662 05-Apr 25739 6238 26267 6678 26930 6894 28211 7376 27604 7272 27537 7329 05-Oct 26806 7058 27643 7458 27416 7447 29089 8165 28929 8122 29715 8516 06-Apr 29703 8492 28520 7894 28178 7899 27438 7489 27882 7708 28360 7760 06-Oct 28907 8263 29881 8461 29956 8441 30406 8598 30131 8571 30769 8650 07-Apr 31357 8876 32746 9282 32421 9228 30381 8749 30982 8969 31508 9230 07-Oct 32183 9645 30181 8979 30698 9036 28027 8207 27256 7923 27408 7876 08-Apr 28468 8281 29555 8750 27724 8229 27325 8420 28289 8629 25329 7654 08-Oct 19795 5993 18419 5267 18570 5553 16918 5131 15789 4599 16863 5012 09-Apr 18515 5767 19341 5990 20071 6184 21117 6664 21365 6729 22879 7170 09-Oct 22025 6672 The graphs and table reflect the change in value of a hypothetical investment in the Fund, including reinvest of dividends and distributions, compared with the listed indices. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly in an index. Minimum initial investment for Institutional Shares is $100,000. The Russell 2000[R] Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000[R] companies with higher price-to-value ratios and higher forecasted growth values. *Inception Date December 9, 1999 **Inception Date February 24, 2000 CENTURY FUNDS 7 CENTURY SHARES TRUST COMMENTARY HOW DID THE PORTFOLIO PERFORM? For the one-year period ended October 31, 2009, Century Shares Trust's Institutional Shares and Investor Shares returned 8.59% and 8.35%, respectively, but underperformed the S&P 500 Index, which returned 9.80% . WHAT FACTORS INFLUENCED PERFORMANCE? From November 2008 to March 2009, the market declined dramatically, with the S&P 500 Index falling more than 50% from its peak in October 2007. Investors reversed course in the spring, and stocks rebounded, rising more than 50% from the low in March. Due in large part to these dramatic shifts in the market, the Fund's performance was volatile during the year. The Fund's more defensive positioning helped performance during the first half of the year, but relative performance lagged during the second half of the year, as the market rebound favored lower quality stocks. Sector allocation contributed to the Fund's performance. The Fund overweighted the Information Technology sector, which was the best performing sector in fiscal 2009, and underweighted the Financial Services sector, which was the worst performing sector. Within the Information Technology sector, we overweighted IT Services and Software because these businesses tend to have low capital expenditures and their products generally help other companies improve their overall productivity. Despite strong contributions from companies such as Ross Stores (an off-price retailer), MasterCard (a payment processor), and Express Scripts (a pharmacy benefit manager), weak overall stock selection was a drag on performance. Stericycle (a medical water disposal firm) and Berkshire Hathaway (a diversified insurer) were two long time holdings that under-performed last year. We believe both companies were affected by macroeconomics, as investors sought riskier, cyclical equities. Intel and Xilinx, two semi-conductor companies, also had a negative impact on performance as anticipated improvement in their results failed to materialize. Gamestop (a videogame retailer) also detracted from performance, due to weak consumer demand. DESCRIBE RECENT PORTFOLIO ACTIVITY. During the second half of the year, we increased the Fund's exposure to Information Technology stocks. We think that Technology companies with attractive business models and solid balance sheets will outperform as the economy rebounds. We have reduced the Fund's exposure to Health Care stocks, which tend to be more defensive, in order to increase the Fund's positions in companies likely to benefit from an economic rebound. DESCRIBE PORTFOLIO POSITIONING AT PERIOD-END. The Portfolio continues to invest in high quality, profitable growth companies. We have shifted the portfolio modestly toward more cyclically-oriented companies to gain exposure to an improving economy over the next 3 to 5 years. CENTURY FUNDS 8 CENTURY SHARES TRUST COMMENTARY (CONTINUED) As of October 31, 2009, the Information Technology sector was overweighted, while the Financials, Energy, and Utility sectors were underweighted. Despite a highly uncertain near term economic outlook, we believe financially strong, market leaders will grow market share during these difficult times and emerge even stronger as the current economic challenges recede. Ten Largest Holdings* Express Scripts, Inc. 4.36% PHARMACY BENEFIT MANAGEMENT Oracle Corp. 3.74% ENTERPRISE SOFTWARE PROVIDER Cisco Systems, Inc. 3.62% TECHNOLOGY NETWORKING Accenture PLC 3.43% MANAGEMENT AND TECHNOLOGY SERVICES Google, Inc. Class A 3.36% WEB-BASED TECHNOLOGY International Business Machines Corp. (IBM) 3.33% TECHNOLOGY, SOFTWARE AND SERVICES Ecolab, Inc. 3.29% CLEANING AND SANITATION Microsoft Corp. 3.26% WORLDWIDE SOFTWARE AND HARDWARE PROVIDER Stericycle, Inc. 3.00% MEDICAL WASTE DISPOSAL QUALCOMM, Inc. 2.99% WIRELESS COMMUNICATION Portfolio Composition* Information Technology 32.3% Health Care 12.2% Industrials 11.7% Consumer Staples 10.1% Consumer Discretionary 10.0% Financials 9.6% Energy 6.8% Materials 3.3% Short-term investment less net liabilities 2.8% Telecommunication Services 1.2% *Based on the Fund's net assets at October 31, 2009 and subject to change. CENTURY FUNDS 9 PERFORMANCE SUMMARY Century Shares Trust -- Institutional Shares and Investor Shares THE PERFORMANCE INFORMATION SHOWN BELOW IS HISTORICAL AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE FLUCTUATE WITH CHANGING MARKET CONDITIONS SO THAT, WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE SUBSTANTIALLY LOWER OR HIGHER THAN THE FUND'S HISTORICAL PERFORMANCE. PLEASE CALL (800) 303-1928 FOR THE FUND'S MOST RECENT MONTH-END PERFORMANCE. AS STATED IN THE FUND'S CURRENT PROSPECTUS, THE TOTAL (GROSS) ANNUAL OPERATING EXPENSE, IS 1.17% FOR THE INSTITUTIONAL SHARES AND 1.61% FOR THE INVESTOR SHARES. THE ADVISER HAS AGREED CONTRACTUALLY TO REIMBURSE OR PAY OPERATING EXPENSES FOR THE FUND'S INVESTOR SHARES TO THE EXTENT NECESSARY TO MAINTAIN NET OPERATING EXPENSES AT 1.45% THROUGH FEBRUARY 28, 2010. RETURNS WOULD HAVE BEEN LOWER DURING RELEVANT PERIODS IF CERTAIN FEES HAD NOT BEEN WAIVED OR EXPENSES REIMBURSED. TO DISCOURAGE SHORT-TERM TRADING, THE FUND MAY IMPOSE A REDEMPTION FEE OF 1.00% ON SHARES HELD LESS THAN 90 DAYS. PERFORMANCE FIGURES AND GRAPHS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR REDEMPTION OF FUND SHARES. RETURNS MAY VARY BY SHARE CLASS. THE RECENT GROWTH RATE IN THE GLOBAL EQUITY MARKETS HAS HELPED TO PRODUCE SHORT-TERM RETURNS FOR SOME SECTORS/ASSET CLASSES THAT ARE NOT TYPICAL AND MAY NOT CONTINUE IN THE FUTURE. BECAUSE OF ONGOING MARKET VOLATILITY, FUND PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL SHORT-TERM CHANGES. -------------------------------------------------------------------------------- Average Annual Total Returns as of 10/31/09 (%) 1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- -------- -------- CST INSTITUTIONAL SHARES 8.59 (6.32) 0.14 3.90 S&P 500 INDEX 9.80 (7.02) 0.33 (0.95) SINCE 1 YEAR 3 YEARS INCEPTION* ------ ------- ---------- CST INVESTOR SHARES 8.35 (6.58) (2.45) S&P 500 INDEX 9.80 (7.02) (1.70) Sources: Century Capital Management, LLC and S&P -------------------------------------------------------------------------------- Line Chart: GROWTH OF $100,000 Institutional Shares CST S&P 500 Oct-99 $100000 $100000 94899.4 102033 95529.7 108042 86650.3 102614 75516.3 100671 96058.5 110520 92941 107195 102628 104996 93930 107584 104566 105902 112123 112480 119232 106542 Oct-00 125277 106091 122143 97727.3 131295 98205.6 122526 101690 121945 92417.6 121273 86562.9 122984 93289.7 129462 93914.7 131020 91629 127403 90727 123726 85047.3 123389 78179.5 1-Oct 121059 79670.3 127587 85781.5 127986 86533 125736 85270.2 129161 83625.8 132250 86770.9 133895 81510.1 132753 80909.6 127482 75145.7 117363 69288.5 116724 69743.4 108252 62163.7 2-Oct 114136 67635.1 116354 71616 111902 67408.8 109846 65642.9 106107 64658 109210 65285.8 118408 70663.4 124128 74386.5 123866 75335.4 127535 76663.6 128846 78158.8 127722 77328.8 3-Oct 133526 81703.2 136035 82422.1 139911 86744.7 144647 88336.9 149832 89564.7 148770 88213.5 146810 86828.7 147709 88020.3 149587 89731.8 144190 86762 144231 87112.9 145948 88056.4 4-Oct 145621 89401.6 151568 93019 157418 96184.3 153678 93839.8 154362 95814.6 152402 94117.9 151261 92332.9 156916 95270.8 158693 95406 160614 98954 158419 98051.2 160385 98845.3 5-Oct 161894 97197.5 168034 100874 167399 100909 167598 103581 168641 103862 169734 105155 171275 106567 166505 103499 166721 103640 167821 104279 172369 106760 175867 109511 6-Oct 178366 113080 180512 115230 184177 116847 185453 118614 182565 116294 183505 117595 189953 122803 196334 127089 193509 124977 187967 121102 191955 122918 197700 127515 7-Oct 199525 129543 196483 124127 196458 123266 183909 115872 178802 112108 174129 111624 182524 117061 186851 118577 174255 108580 172952 107668 174081 109225 159828 99492.3 8-Oct 135059 82782.8 125933 76842.7 125236 77660.3 117660 71114.6 111563 63542.5 118618 69108.5 128023 75722.8 131681 79958.3 132813 80116.9 140042 86176.7 143438 89288 149361 92620.3 9-Oct 146661 90899.4 Line Chart: GROWTH OF $10,000 Investor Shares* CST S&P 500 7/18/2005 $10000 $10000 10011 10113 9871 10020 9997 10102 5-Oct 10100 9933 10484 10309 10435 10312 10432 10585 10488 10614 10543 10746 6-Apr 10630 10891 10323 10577 10330 10591 10389 10657 10666 10910 10878 11192 6-Oct 11027 11556 11154 11776 11375 11941 11445 12122 11262 11885 11316 12018 7-Apr 11712 12550 12098 12988 11924 12772 11578 12376 11819 12562 12174 13031 7-Oct 12282 13239 12094 12685 12099 12597 11324 11842 11006 11457 10714 11407 8-Apr 11229 11963 11499 12118 10722 11096 10642 11003 10706 11162 9821 10168 8-Oct 8297 8460 7754 7853 7711 7937 7242 7268 6858 6494 7290 7063 9-Apr 7865 7739 8079 8171 8148 8188 8585 8807 8793 9125 9160 9465 9-Oct 8990 9289 The graphs and table reflect the change in value of a hypothetical investment in the Fund, including reinvest of dividends and distributions, compared with the listed indices. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly in an index. Minimum initial investment for Institutional Shares is $100,000. The S&P 500[R] Index is a broad based unmanaged index representing the performance of 500 widely held common stocks. One cannot invest directly in an index. *Inception Date July 18, 2005 10 CENTURY FUNDS SHAREHOLDER EXPENSE EXAMPLE As a shareholder of a Fund, you incur two types of costs: (1) transaction costs including redemption fees, and (2) ongoing costs, including management fees, distribution and service fees (in the case of Investor Shares of both Funds) and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare those costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2009 to October 31, 2009). ACTUAL EXPENSES The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00=8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. An annual maintenance fee of $10.00 that is charged once a year may apply for certain IRA accounts. This fee is not included in the table below. If it were, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Century Shares Trust EXPENSES PAID BEGINNING ENDING DURING PERIOD* ACCOUNT VALUE ACCOUNT VALUE SIX MONTHS ENDING MAY 1, 2009 OCTOBER 31, 2009 OCTOBER 31, 2009 ------------- ---------------- ----------------- Based on Actual Fund Return Institutional Shares $1,000.00 $1,145.60 $6.54 Investor Shares $1,000.00 $1,143.00 $7.83 Based on Hypothetical 5% Yearly Return before expenses Institutional Shares $1,000.00 $1,019.11 $6.16 Investor Shares $1,000.00 $1,017.90 $7.37
* The Fund's annualized expense ratios are 1.20% for Institutional Shares and 1.45% for Investor Shares. The dollar amounts shown as "Expenses Paid" are equal to the annual expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365.
Century Small Cap Select Fund EXPENSES PAID BEGINNING ENDING DURING PERIOD* ACCOUNT VALUE ACCOUNT VALUE SIX MONTHS ENDING MAY 1, 2009 OCTOBER 31, 2009 OCTOBER 31, 2009 ------------- ---------------- ----------------- Based on Actual Fund Return Institutional Shares $1,000.00 $1,191.80 $6.41 Investor Shares $1,000.00 $1,189.60 $8.44 Based on Hypothetical 5% Yearly Return before expenses Institutional Shares $1,000.00 $1,019.36 $5.90 Investor Shares $1,000.00 $1,017.49 $7.78
* The Fund's annualized expense ratios are 1.14% for Institutional Shares and 1.53% for Investor Shares. The dollar amounts shown as "Expenses Paid" are equal to the annual expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365. CENTURY FUNDS 11 CENTURY SHARES TRUST PORTFOLIO OF INVESTMENTS -- AS OF OCTOBER 31, 2009 Shares Value ------------------------------------------------------------- Common Stock - 97.2% CONSUMER DISCRETIONARY - 10.0% DIVERSIFIED CONSUMER SERVICES - 2.3% 19,300 Strayer Education, Inc. $ 3,917,321 ------------ HOTELS, RESTAURANTS & LEISURE - 2.4% 208,250 Starbucks Corp.* 3,952,585 ------------ MEDIA - 2.2% 141,200 The DIRECTV Group, Inc.* 3,713,560 ------------ SPECIALTY RETAIL - 3.1% 145,850 GameStop Corp. Class A* 3,542,696 38,200 Ross Stores, Inc. 1,681,182 ------------ 5,223,878 ------------ 16,807,344 ------------ CONSUMER STAPLES - 10.1% BEVERAGES - 2.0% 56,350 PepsiCo, Inc. 3,411,992 ------------ FOOD AND STAPLES RETAILING - 4.5% 123,150 CVS Caremark Corp. 4,347,195 64,000 Wal-Mart Stores, Inc. 3,179,520 ------------ 7,526,715 ------------ FOOD PRODUCTS - 2.1% 165,000 ConAgra Foods, Inc. 3,465,000 ------------ PERSONAL PRODUCTS - 1.5% 76,350 Avon Products, Inc. 2,447,018 ------------ 16,850,725 ------------ ENERGY - 6.8% ENERGY EQUIPMENT AND SERVICES - 4.6% 100,650 Helmerich & Payne, Inc. 3,826,713 62,200 Schlumberger Ltd. 3,868,840 ------------ 7,695,553 ------------ OIL, GAS AND CONSUMABLE FUELS - 2.2% 85,100 CONSOL Energy, Inc. 3,643,131 ------------ 11,338,684 ------------ Shares Value ------------------------------------------------------------- FINANCIALS - 9.6% CAPITAL MARKETS - 3.2% 92,850 The Charles Schwab Corp. $1,610,019 22,250 The Goldman Sachs Group, Inc. 3,786,283 ---------- 5,396,302 ---------- DIVERSIFIED FINANCIAL SERVICES - 4.3% 95,250 JPMorgan Chase & Co. 3,978,592 123,700 NYSE Euronext 3,197,645 ---------- 7,176,237 ---------- INSURANCE - 2.1% 35 Berkshire Hathaway, Inc. Class A* 3,465,000 4,300 Verisk Analytics, Inc.* 117,949 ---------- 3,582,949 ---------- 16,155,488 ---------- HEALTH CARE - 12.2% HEALTH CARE EQUIPMENT AND SUPPLIES - 5.3% 24,900 C.R. Bard, Inc. 1,869,243 102,050 St Jude Medical, Inc.* 3,477,864 66,500 Zimmer Holdings, Inc.* 3,495,905 ---------- 8,843,012 ---------- HEALTH CARE PROVIDERS AND SERVICES - 6.9% 193,750 AmerisourceBergen Corp. 4,291,562 91,400 Express Scripts, Inc.* 7,304,688 ---------- 11,596,250 ---------- 20,439,262 ---------- INDUSTRIALS - 11.7% AIR FREIGHT AND LOGISTICS - 2.6% 79,450 CH Robinson Worldwide, Inc. 4,378,489 ---------- COMMERCIAL SERVICES AND SUPPLIES - 3.0% 95,950 Stericycle, Inc.* 5,024,901 ---------- MACHINERY - 1.7% 63,450 Deere & Co. 2,890,148 ---------- ROAD AND RAIL - 2.1% 82,900 CSX Corp. 3,496,722 ---------- See notes to financial statements. 12 CENTURY FUNDS CENTURY SHARES TRUST (CONTINUED) PORTFOLIO OF INVESTMENTS -- ASOF OCTOBER 31, 2009 Shares Value ------------------------------------------------ ------------ INDUSTRIALS (continued) TRADING COMPANIES AND DISTRIBUTORS - 2.3% 40,450 WW Grainger, Inc. $ 3,791,379 ------------ 19,581,639 ------------ INFORMATION TECHNOLOGY - 32.3% COMMUNICATIONS EQUIPMENT - 6.6% 265,200 Cisco Systems, Inc.* 6,059,820 121,100 QUALCOMM, Inc. 5,014,751 ------------ 11,074,571 ------------ COMPUTERS AND PERIPHERALS - 5.3% 17,600 Apple, Inc.* 3,317,600 46,300 International Business Machines Corp. 5,584,243 ------------ 8,901,843 ------------ INTERNET SOFTWARE AND SERVICES - 3.4% 10,500 Google, Inc. Class A* 5,629,260 ------------ IT SERVICES - 6.2% 154,950 Accenture PLC 5,745,546 21,500 MasterCard, Inc. Class A 4,708,930 ------------ 10,454,476 ------------ SEMICONDUCTORS AND SEMICONDUCTOR EQUIPMENT - 3.8% 165,300 Intel Corp. 3,158,883 146,200 Xilinx, Inc. 3,179,850 ------------ 6,338,733 ------------ SOFTWARE - 7.0% 196,890 Microsoft Corp. 5,459,760 296,950 Oracle Corp. 6,265,645 ------------ 11,725,405 ------------ 54,124,288 ------------ MATERIALS - 3.3% CHEMICALS - 3.3% 125,300 Ecolab, Inc. 5,508,188 ------------ Shares Value ------------------------------------------------ ------------ TELECOMMUNICATION SERVICES - 1.2% WIRELESS TELECOMMUNICATION SERVICES - 1.2% 77,250 NII Holdings, Inc.* $ 2,080,343 ------------ Total Investment in Common Stocks - 97.2% (Identified cost, $129,462,720) 162,885,961 ------------ SHORT-TERM INVESTMENT - 1.7% 2,850,705 SSgA US Government Money Market Fund (Identified cost, $2,850,705) 2,850,705 ------------ Total Investments - 98.9% (Identified cost, $132,313,425) 165,736,666 ------------ Other Assets Less Liabilities - 1.1% Other Assets in Excess of Liabilities 1,888,384 ------------ Net Assets - 100% $167,625,050 ============ * Non-income producing security See notes to financial statements. CENTURY FUNDS 13 CENTURY SMALL CAP SELECT FUND PORTFOLIO OF INVESTMENTS -- AS OF OCTOBER 31, 2009 Shares Value --------------------------------------------------------------- Common Stock - 98.7% CONSUMER DISCRETIONARY - 9.4% DIVERSIFIED CONSUMER SERVICES - 3.2% 142,400 Capella Education Co.* $ 9,811,360 -------------- LEISURE EQUIPMENT AND PRODUCTS - 1.4% 212,650 Pool Corp. 4,163,687 -------------- MEDIA - 1.8% 154,250 John Wiley & Sons, Inc. 5,432,685 -------------- SPECIALTY RETAIL - 2.5% 253,400 Monro Muffler Brake, Inc. 7,852,866 -------------- TEXTILES, APPAREL AND LUXURY GOODS - 0.5% 81,200 Fuqi International, Inc.* 1,663,788 -------------- 28,924,386 -------------- CONSUMER STAPLES - 4.1% FOOD AND STAPLES RETAILING - 3.3% 286,850 BJ's Wholesale Club, Inc.* 10,048,356 -------------- FOOD PRODUCTS - 0.8% 70,200 TreeHouse Foods, Inc.* 2,625,480 -------------- 12,673,836 -------------- ENERGY - 5.7% ENERGY EQUIPMENT AND SERVICES - 5.0% 102,750 Core Laboratories NV 10,716,825 96,300 Dril-Quip, Inc.* 4,679,217 -------------- 15,396,042 -------------- OIL, GAS AND CONSUMABLE FUELS - 0.7% 85,400 Goodrich Petroleum Corp.* 2,192,218 -------------- 17,588,260 -------------- FINANCIALS - 9.4% CAPITAL MARKETS - 1.6% 143,350 Cohen & Steers, Inc. 2,770,956 49,500 Piper Jaffray Companies, Inc.* 2,296,305 -------------- 5,067,261 -------------- Shares Value --------------------------------------------------------------- FINANCIALS (continued) COMMERCIAL BANKS - 2.6% 285,400 Wintrust Financial Corp. $ 8,051,134 -------------- INSURANCE - 1.7% 142,150 Platinum Underwriters Holdings, Ltd. 5,084,705 -------------- REAL ESTATE INVESTMENT TRUSTS (REITS) - 3.5% 1,301,200 MFA Financial, Inc. 9,654,904 75,350 Redwood Trust, Inc. 1,050,379 -------------- 10,705,283 -------------- 28,908,383 -------------- HEALTH CARE - 24.8% HEALTH CARE EQUIPMENT AND SUPPLIES - 6.6% 200,600 ICU Medical, Inc.* 7,021,000 155,142 Kensey Nash Corp.* 3,709,445 215,600 Masimo Corp.* 5,728,492 171,200 Meridian Bioscience, Inc. 3,798,928 -------------- 20,257,865 -------------- HEALTH CARE PROVIDERS AND SERVICES - 9.4% 464,900 Brookdale Senior Living, Inc.* 7,828,916 117,450 IPC The Hospitalist Co, Inc.* 3,558,735 221,150 Lincare Holdings, Inc.* 6,946,321 527,200 PSS World Medical, Inc.* 10,659,984 -------------- 28,993,956 -------------- HEALTH CARE TECHNOLOGY - 3.1% 65,500 Quality Systems, Inc. 3,996,810 120,200 SXC Health Solutions Corp.* 5,490,736 -------------- 9,487,546 -------------- LIFE SCIENCES TOOLS AND SERVICES - 3.1% 887,300 Bruker Corp.* 9,618,332 -------------- PHARMACEUTICALS - 2.6% 380,550 Par Pharmaceutical Cos, Inc.* 7,980,134 -------------- 76,337,833 -------------- See notes to financial statements. CENTURY FUNDS 14 CENTURY SMALL CAP SELECT FUND (CONTINUED) PORTFOLIO OF INVESTMENTS -- AS OF OCTOBER 31, 2009 Shares Value --------------------------------------------------------------- INDUSTRIALS - 12.7% AIR FREIGHT AND LOGISTICS - 3.0% 367,600 HUB Group, Inc. Class A* $ 9,138,536 -------------- COMMERCIAL SERVICES AND SUPPLIES - 4.4% 65,800 Clean Harbors, Inc.* 3,714,410 429,859 Cornell Companies, Inc.* 9,817,980 -------------- 13,532,390 -------------- CONSTRUCTION AND ENGINEERING - 1.3% 136,350 Granite Construction, Inc. 3,894,156 -------------- ELECTRICAL EQUIPMENT - 2.3% 54,700 General Cable Corp.* 1,703,358 235,750 Woodward Governor Co. 5,542,482 -------------- 7,245,840 -------------- MACHINERY - 1.7% 135,150 ESCO Technologies, Inc.* 5,308,692 -------------- 39,119,614 -------------- INFORMATION TECHNOLOGY - 27.7% COMMUNICATIONS EQUIPMENT - 4.7% 132,450 Avocent Corp.* 3,294,032 220,050 Polycom, Inc.* 4,724,473 195,450 Starent Networks Corp.* 6,594,483 -------------- 14,612,988 -------------- INTERNET SOFTWARE AND SERVICES - 3.6% 435,400 j2 Global Communications, Inc.* 8,903,930 445,950 LivePerson, Inc.* 2,243,129 -------------- 11,147,059 -------------- IT SERVICES - 2.1% 177,500 CyberSource Corp.* 2,907,450 663,300 Online Resources Corp.* 3,482,325 -------------- 6,389,775 -------------- Shares Value --------------------------------------------------------------- INFORMATION TECHNOLOGY (continued) SEMICONDUCTORS AND SEMICONDUCTOR EQUIPMENT - 5.3% 174,800 Cabot Microelectronics Corp.* $ 5,590,104 183,450 Hittite Microwave Corp.* 6,750,960 97,550 Silicon Laboratories, Inc.* 4,087,345 -------------- 16,428,409 ------------- SOFTWARE - 12.0% 285,550 Commvault Systems, Inc.* 5,625,335 538,074 EPIQ Systems, Inc.* 6,785,113 371,200 Informatica Corp.* 7,880,576 251,550 MICROS Systems, Inc.* 6,771,726 236,150 Sourcefire, Inc.* 4,793,845 314,100 Websense, Inc.* 5,044,446 -------------- 36,901,041 -------------- 85,479,272 -------------- MATERIALS - 4.9% CHEMICALS - 2.5% 276,050 Balchem Corp. 7,616,219 -------------- CONTAINERS AND PACKAGING - 2.4% 138,700 Greif, Inc. Class A 7,423,224 -------------- 15,039,443 -------------- Total Investment in Common Stocks - 98.7% (Identified cost, $263,785,777) 304,071,027 -------------- SHORT-TERM INVESTMENT - 1.6% 4,824,053 SSgA US Government Money Market Fund (Identified cost, $4,824,053) 4,824,053 -------------- Total Investments - 100.3% (Identified cost, $268,609,830) 308,895,080 -------------- Other Assets Less Liabilities - (0.3)% Liabilities in Excess of Other Assets (790,862) -------------- Net Assets - 100% $ 308,104,218 ============== * Non-income producing security See notes to financial statements. CENTURY FUNDS 15
STATEMENTS OF ASSETS AND LIABILITIES - AS OFOCTOBER 31, 2009 CENTURY SHARES CENTURY SMALL CAP TRUST SELECT FUND ---------------- ---------------- Assets: Investments, at value (Note 1A) (Identified cost of $132,313,425 and $268,609,830, respectively) $ 165,736,666 $ 308,895,080 Dividends receivable 180,194 8,735 Receivable for investments sold 2,678,655 2,216,155 Receivable for Fund shares sold 974 310,392 Receivable for dividend reclaims 30,846 -- Prepaid expenses 2,776 5,760 ---------------- ---------------- Total Assets 168,630,111 311,436,122 ---------------- ---------------- Liabilities: Payable to Affiliates: Investment adviser fee (Note 4) 116,860 267,290 Administration fee (Note 5) 14,716 12,000 Distribution and service fees (Note 6) 1,049 23,095 Accrued expenses and other liabilities 149,920 190,440 Payable for investments purchased 721,516 2,555,391 Payable for Fund shares repurchased 1,000 213,688 Due to custodian -- 70,000 ---------------- ---------------- Total Liabilities 1,005,061 3,331,904 ---------------- ---------------- Net Assets $ 167,625,050 $ 308,104,218 ================ ================ At October 31, 2009, net assets consisted of: Paid-in capital $ 146,563,024 $ 466,288,932 Accumulated net realized loss on investments (12,361,215) (198,469,964) Unrealized appreciation in value of investments 33,423,241 40,285,250 ---------------- ---------------- Net assets applicable to outstanding capital stock $ 167,625,050 $ 308,104,218 ================ ================ Net Assets consist of: Institutional Shares $ 166,573,970 $ 216,294,798 Investor Shares $ 1,051,080 $ 91,809,420 Shares Outstanding consist of (Note 2): Institutional Shares 9,894,060 13,238,615 Investor Shares 62,316 5,737,262 Net Asset Value Per Share (Represents both the offering and redemption price*) Institutional Shares $ 16.84 $ 16.34 Investor Shares $ 16.87 $ 16.00
* In general, shares of the Funds may be redeemed at net asset value. However, upon the redemption of shares held less than 90 days, a redemption fee of 1% of the current net asset value of the shares may be assessed and retained by each share class of each Fund for the benefit of their respective remaining shareholders.The redemption fee is accounted for as an addition to paid-in-capital. See notes to financial statements. CENTURY FUNDS 16
STATEMENTS OF OPERATIONS - YEAR ENDED OCTOBER 31, 2009 CENTURY SHARES CENTURY SMALL CAP TRUST SELECT FUND INVESTMENT INCOME: Dividends (net of foreign withholding tax of $0 and $40,706, respectively) $ 1,887,351 $ 3,143,981 Interest 9,003 16,951 Other Income -- 91,368 -------------- -------------- Total investment income 1,896,354 3,252,300 -------------- -------------- EXPENSES: Investment adviser fee (Note 4) 1,239,193 2,916,346 Non-interested trustees' remuneration 91,295 178,614 Transfer agent Institutional Shares 123,469 69,234 Investor Shares 10,497 195,522 Custodian 55,135 77,124 Administration fees (Note 5) 154,899 9,056 Insurance 15,891 29,609 Professional fees 63,228 81,208 Registration 29,983 52,852 Distribution and service fees (Note 6) 2,022 174,630 Printing and other expenses 82,251 71,070 -------------- -------------- Total expenses 1,867,863 3,855,265 Adviser reimbursement (Note 7) (9,749) -- -------------- -------------- Net expenses 1,858,114 3,855,265 -------------- -------------- Net investment income/(loss) 38,240 (602,965) -------------- -------------- Realized and unrealized gain/(loss) on investments: Net realized loss from investment transactions (9,196,030) (89,355,285) Increase in unrealized appreciation on investments 21,964,091 121,153,665 -------------- -------------- Net realized and unrealized gain on investments 12,768,061 31,798,380 -------------- -------------- Net increase in net assets resulting from operations $ 12,806,301 $ 31,195,415 ============== ==============
See notes to financial statements. CENTURY FUNDS 17
STATEMENTS OF CHANGES IN NET ASSETS CENTURY SHARES CENTURY SMALL CAP TRUST SELECT FUND INCREASE (DECREASE) Year Ended Year Ended Year Ended Year Ended IN NET ASSETS: October 31, 2009 October 31, 2008 October 31, 2009 October 31, 2008 ------------------------- ---------------- ---------------- ---------------- Operations: Net investment income/(loss) $ 38,240 $ (60,054) $ (602,965) $ (4,234,899) Net realized loss on investment transactions (9,196,030) (3,040,118) (89,355,285) (107,528,818) Change in net unrealized appreciation 21,964,091 (80,963,010) 121,153,665 (147,196,812) ------------------------- ---------------- ---------------- ---------------- Net increase/(decrease) in net assets resulting from operations 12,806,301 (84,063,182) 31,195,415 (258,960,529) Distributions to shareholders from: Net investment income Institutional Shares (321,578) (2,847,889) -- (1,685,889) Investor Shares -- (4,026) -- -- Net realized gain from investment transactions Institutional Shares -- (59,501,761) -- (42,722,585) Investor Shares -- (194,447) -- (19,828,953) Tax return of capital Institutional Shares -- -- -- (4,213,810) Investor Shares -- -- -- (1,794,048) Capital share transactions - net (Note 2) (13,680,291) 26,755,389 (88,146,797) (138,623,491) Redemption fees 553 274 10,751 97,806 ------------------------- ---------------- ---------------- ---------------- Total decrease (1,195,015) (119,855,642) (56,940,631) (467,731,499) NET ASSETS: Beginning of year 168,820,065 288,675,707 365,044,849 832,776,348 ------------------------- ---------------- ---------------- ---------------- End of year $ 167,625,050 $ 168,820,065 $ 308,104,218 $ 365,044,849 ========================= ================ ================ ================
See notes to financial statements. CENTURY FUNDS 18
FINANCIAL HIGHLIGHTS Century Shares Trust YEAR ENDED OCTOBER 31, Institutional Shares 2009 2008 2007 2006 2005 ----------- ----------- ----------- ------------ ----------- Net Asset Value, beginning of period $ 15.51 $ 29.52 $ 35.69 $ 35.40 $ 35.62 ----------- ----------- ----------- ---------- ----------- Income/(loss) from Investment Operations: Net investment income/(loss)(a) 0.00+ (0.01) 0.16 0.10 0.19 Net realized and unrealized gain/(loss) on investments 1.36 (7.44) 2.95 3.31 3.54 ----------- ----------- ----------- ---------- ----------- Total income/(loss) from investment operations 1.36 (7.45) 3.11 3.41 3.73 ----------- ----------- ----------- ---------- ----------- Less Distributions From: Net investment income (0.03) (0.30) (0.43) (0.77) (0.32) Net realized gain on investment transactions (0.00) (6.26) (8.85) (2.35) (3.63) ----------- ----------- ----------- ---------- ----------- Total distributions (0.03) (6.56) (9.28) (3.12) (3.95) ----------- ----------- ----------- ---------- ----------- Redemption fees 0.00+ 0.00+ 0.00+ 0.00+ 0.00+ ----------- ----------- ----------- ---------- ----------- Net Asset Value, end of period $ 16.84 $ 15.51 $ 29.52 $ 35.69 $ 35.40 =========== =========== =========== ========== =========== Total Return 8.59% (32.31)% 11.86% 10.17% 11.18% Ratios and supplemental data Net assets, end of period (000 omitted) $ 166,574 $168,199 $287,670 $305,172 $ 323,643 Ratio of expenses to average net assets 1.20% 1.17% 1.10% 1.11% 1.12% Ratio of net investment income/(loss) to average net assets 0.03% (0.02)% 0.56% 0.29% 0.55% Portfolio Turnover Rate 79% 91% 38% 48% 19%
(a) Calculated based on average shares outstanding during the period. + Amount represents less than $0.005 per share. See notes to financial statements. CENTURY FUNDS 19
FINANCIAL HIGHLIGHTS PERIOD ENDED Century Shares Trust YEAR ENDED OCTOBER 31, OCTOBER 31, Investor Shares 2009 2008 2007 2006 2005(A) ----------- ----------- ----------- ------------ ----------- Net Asset Value, beginning of period $ 15.54 $ 29.46 $ 35.41 $ 35.35 $ 35.00 ----------- ----------- ----------- ---------- ----------- Income/(loss) from Investment Operations: Net investment income/(loss)(b) (0.03) (0.06) 0.01 (0.19) (0.03) Net realized and unrealized gain/(loss) on investments 1.36 (7.47) 2.96 3.27 0.29 ----------- ----------- ----------- ---------- ----------- Total income/(loss) from investment operations 1.33 (7.53) 2.97 3.08 0.26 ----------- ----------- ----------- ---------- ----------- Less Distributions From: Net investment income (0.00) (0.13) (0.07) (0.68) (0.00) Net realized gain on investment transactions (0.00) (6.26) (8.85) (2.35) (0.00) ----------- ----------- ----------- ---------- ----------- Total distributions (0.00) (6.39) (8.92) (3.03) (0.00) ----------- ----------- ----------- ---------- ----------- Redemption fees 0.00+ 0.00+ 0.00+ 0.01 0.09 ----------- ----------- ----------- ---------- ----------- Net Asset Value, end of period $ 16.87 $ 15.54 $ 29.46 $ 35.41 $ 35.35 =========== =========== =========== ========== =========== Total Return 8.35% (32.45)% 11.38% 9.18% 1.00%** Ratios and supplemental data Net assets, end of period (000 omitted) $ 1,051 $ 621 $ 1,006 $ 1,844 $ 1,139 Ratio of expenses to average net assets 1.45% 1.45% 1.56% 2.00% 1.20%* Ratio of expenses to average net assets without giving effect to contractual expense agreement 2.64% 1.61% 1.95% 2.15% 1.35%* Ratio of net investment income/(loss) to average net assets (0.22)% (0.31)% 0.05% (0.58)% (0.36)%* Portfolio turnover rate 79% 91% 38% 48% 19%(c)
(a) From the commencement date of investment operations, July 18, 2005 to October 31, 2005. (b) Calculated based on average shares outstanding during the period. (c) For the one year period ended October 31, 2005. + Amount represents less than $0.005 per share. * Annualized ** Not annualized See notes to financial statements. CENTURY FUNDS 20
FINANCIAL HIGHLIGHTS Century Small Cap Select Fund YEAR ENDED OCTOBER 31, Institutional Shares 2009 2008 2007 2006 2005 ----------- ----------- ----------- ------------ ----------- Net Asset Value, beginning of period $ 14.62 $ 26.13 $ 25.74 $ 24.15 $ 22.46 ----------- ----------- ----------- ---------- ----------- Income/(loss) from Investment Operations: Net investment income/(loss)(a) (0.01) (0.12) 0.00+ 0.06 0.03 Net realized and unrealized gain/(loss) on investments 1.73 (9.00) 2.75 1.90 2.22 ----------- ----------- ----------- ---------- ----------- Total income/(loss) from investment operations 1.72 (9.12) 2.75 1.96 2.25 ----------- ----------- ----------- ---------- ----------- Less Distributions From: Net investment income (0.00) (0.10) (0.35) (0.09) (0.00) Net realized gain on investment transactions (0.00) (2.10) (2.01) (0.28) (0.56) Tax return of capital (0.00) (0.19) (0.00) (0.00) (0.00) ----------- ----------- ----------- ---------- ----------- Total distributions (0.00) (2.39) (2.36) (0.37) (0.56) ----------- ----------- ----------- ---------- ----------- Redemption fees 0.00+ 0.00+ 0.00+ 0.00+ 0.00+ ----------- ----------- ----------- ---------- ----------- Net Asset Value, end of period $ 16.34 $ 14.62 $ 26.13 $ 25.74 $ 24.15 =========== =========== =========== ========== =========== Total Return 11.69% (38.24)% 11.61% 8.21% 10.19% Ratios and supplemental data Net assets, end of period (000 omitted) $ 216,295 $262,793 $575,027 $540,697 $585,723 Ratio of expenses to average net assets 1.14% 1.11% 1.08% 1.07% 1.06% Ratio of net investment income/(loss) to average net assets (0.08)% (0.57)% 0.02% 0.25% 0.13% Portfolio Turnover Rate 133% 104% 100% 127% 96%
(a) Calculated based on average shares outstanding during the period. + Amount represents less than $0.005 per share. See notes to financial statements. CENTURY FUNDS 21
FINANCIAL HIGHLIGHTS Century Small Cap Select Fund YEAR ENDED OCTOBER 31, Investor Shares 2009 2008 2007 2006 2005 ----------- ----------- ----------- ------------ ----------- Net Asset Value, beginning of period $ 14.37 $ 25.72 $ 25.40 $ 23.86 $ 22.26 ----------- ----------- ----------- ------------ ----------- Income/(loss) from Investment Operations: Net investment loss(a) (0.07) (0.20) (0.06) (0.02) (0.04) Net realized and unrealized gain/(loss) on investments 1.70 (8.86) 2.71 1.86 2.20 ----------- ----------- ----------- ------------ ----------- Total income/(loss) from investment operations 1.63 (9.06) 2.65 1.84 2.16 ----------- ----------- ----------- ------------ ----------- Less Distributions From: Net investment income (0.00) (0.00) (0.32) (0.03) (0.00) Net realized gain on investment transactions (0.00) (2.10) (2.01) (0.28) (0.56) Tax return of capital (0.00) (0.19) (0.00) (0.00) (0.00) ----------- ----------- ----------- ------------ ----------- Total distributions (0.00) (2.29) (2.33) (0.31) (0.56) ----------- ----------- ----------- ------------ ----------- Redemption fees 0.00+ 0.00+ 0.00+ 0.01 0.00+ ----------- ----------- ----------- ------------ ----------- Net Asset Value, end of period $ 16.00 $ 14.37 $ 25.72 $ 25.40 $ 23.86 =========== =========== =========== ============ =========== Total Return 11.27% (38.49)% 11.34% 7.83% 9.87% Ratios and supplemental data Net assets, end of period (000 omitted) $91,809 $102,252 $257,750 $ 353,581 $407,048 Ratio of expenses to average net assets 1.53% 1.50% 1.36% 1.45% 1.35% Ratio of net investment loss to average net assets (0.47)% (0.96)% (0.24)% (0.09)% (0.17)% Portfolio turnover rate 133% 104% 100% 127% 96%
(a) Calculated based on average shares outstanding during the period. + Amount represents less than $0.005 per share. See notes to financial statements. CENTURY FUNDS 22 NOTES TO FINANCIAL STATEMENTS (1) SIGNIFICANT ACCOUNTING POLICIES ---- Century Capital Management Trust (the "Trust") is registered under the Investment Company Act of 1940 ("1940 Act"), as amended, as an open-end management investment company organized as a Massachusetts business trust. Century Shares Trust and Century Small Cap Select Fund (each a "Fund" and, collectively, the "Funds") are diversified series of the Trust. The following is a summary of significant accounting policies consistently followed by both Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("generally accepted accounting principles"). A. Security Valuations ---- Equity securities are valued at the last reported sale price or official closing price on the primary exchange or market on which they are traded, as reported by an independent pricing service. If no sale price or official closing price is reported, market value is generally determined based on quotes or closing prices obtained from a quotation reporting system, established market maker, or reputable pricing service. For unlisted securities and for exchange-listed securities for which there are no reported sales or official closing prices, fair value is generally determined using closing bid prices. Short-term obligations, maturing in 60 days or less, are valued at amortized cost, which approximates fair value. Investments in open-end mutual funds are valued at their closing net asset value each business day. The Funds adopted Financial Accounting Standards Board ("FASB") Statement of Financial Accounting Standards No. 157 "Fair Value Measurements" (currently FASB ASC 820-10), effective November 1, 2008, which establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value each Fund's investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below. o Level 1 -- quoted prices in active markets for identical investments o Level 2 -- significant other observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) o Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used as of October 31, 2009 in valuing the Funds' investments carried at fair value:
QUOTED PRICES IN ACTIVE SIGNIFICANT MARKET FOR SIGNIFICANT OTHER UNOBSERVABLE IDENTICAL ASSETS OBSERVABLE INPUTS INPUTS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ----------------------------- ---------------- ------------------ ------------- ------------ CENTURY SHARES TRUST Common Stock* $ 162,885,961 $ -- $ -- $162,885,961 Money Market Funds 2,850,705 -- -- 2,850,705 ---------------- ---------- ---------- ------------ Total Investments $ 165,736,666 $ -- $ -- $165,736,666 ---------------- ---------- ---------- ------------ CENTURY SMALL CAP SELECT FUND Common Stock* $ 304,071,027 $ -- $ -- $304,071,027 Money Market Funds 4,824,053 -- -- 4,824,053 ---------------- ---------- ---------- ------------ Total Investments $ 308,895,080 $ -- $ -- $308,895,080 ---------------- ---------- ---------- ------------
* At October 31, 2009 the Funds held investments in common stocks classified as Level 1, with corresponding major categories as shown on each Fund's Portfolio of Investments. CENTURY FUNDS 23 B. Security Transactions ---- Security transactions are recorded on a trade date basis. Gain or loss on sales is determined by the use of a specific identification method, for both financial reporting and federal income tax purposes. Dividend income is recorded on the ex-dividend date. Payments received from certain investments held by the Funds may be comprised of dividends, capital gains and return of capital. The Funds originally estimate the expected classification of such payments. The amounts may subsequently be reclassified upon receipt of information from the issuer. The Funds may invest in equity securities issued or guaranteed by companies organized and based in countries outside of the United States. These securities may be traded on foreign securities exchanges or in foreign over-the-counter markets. Foreign dividend income is recorded on ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. Foreign income and capital gain on some foreign securities may be subject to foreign withholding taxes, which are accrued as applicable. Interest income is recorded daily on an accrual basis. C. Use of Estimates ---- The preparation of these financial statements in accordance with generally accepted accounting principles incorporates estimates made by management in determining the reported amounts of assets, liabilities, income and expenses of the Funds. Actual results could differ from those estimates. D. Risks and Uncertainty -- Century Small Cap Select Fund concentrates its investments in certain industries detailed in the Portfolio of Investments, which subjects the Fund to the risks associated with those industries and may result in greater fluctuation in share value than is experienced in more diversified portfolios. In addition, the Fund invests in smaller companies, which generally involves greater risk than investing in larger, more established companies. Investments in securities issued by non U.S. companies have certain risks not present in domestic issuers. At any given time, a significant portion of the assets of either Fund may be invested in securities of companies within the same market sector of the economy. Companies within the same sector often face similar issues and, consequently, may react similarly to changes in market conditions. If either Fund has a significant weighting in one or more sectors, it may be subject to more risk and price volatility than other funds. E. Multiple Classes of Shares ---- Each Fund offers two classes of shares, which differ in their respective distribution and service fees. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Certain expense reductions may differ by class. Because transfer agent fees include a per account fee, each class differs with respect to transfer agent fees incurred. F. Redemption Fees ---- In general, shares of each Fund may be redeemed at net asset value. However, upon the redemption of shares held less than 90 days, a redemption fee of 1% of the current net asset value of the shares may be assessed and retained by each share class of each Fund for the benefit of the Fund's remaining shareholders. The redemption fee is accounted for as an addition to paid-in-capital. G. Income Tax Information and Distributions to Shareholders ---- Each year, each Fund intends to qualify as a regulated investment company by distributing all of its taxable income and sufficient net investment income and net realized gains, if any, under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent book and tax differences. Generally accepted accounting principles require that any distributions in excess of tax basis earnings and profits be reported in the financial statements as a tax return of capital. CENTURY FUNDS 24 In order to present undistributed (distributions in excess of ) net investment income ("UNII") and accumulated net realized loss ("Accumulated Loss") more closely to its tax character, the following accounts for each Fund were increased (decreased): PAID-IN ACCUMULATED CAPITAL UNII LOSS ----------------------------- ---------- -------- ----------- Century Shares Trust $(283,338) $283,338 $ -- Century Small Cap Select Fund $(714,179) $602,965 $111,214 These reclassifications have no impact on net assets or the results of operations. The Funds had temporary book/tax differences primarily attributable to wash sales on portfolio securities and permanent book/tax differences primarily attributable to net operating losses. Temporary differences will reverse in a subsequent period. The tax-basis components of distributable earnings and the federal income tax cost of investments as of October 31, 2009 were as follows: CENTURY SHARES TRUST Gross unrealized appreciation $ 34,119,786 Gross unrealized depreciation (906,690) ------------ Unrealized net appreciation $ 33,213,096 Cost for federal income tax purposes $ 132,523,570 The differences between the components of distributable earnings on a tax basis and the amounts reflected in the Statement of Assets and Liabilities are primarily due to wash sales. As of October 31, 2009, the Fund had a capital loss carryforward of $12,151,070, of which $2,618,549 will expire on October 31, 2016 and $9,532,521 which will expire on October 31, 2017. This carryforward may be used to offset future capital gains to the extent provided by regulations. The tax character of distributions paid were as follows: Year Ended October 31, 2009 2008 ---- ---- Ordinary Income Institutional shares $ 321,578 $ 5,830,327 Investor shares $ -- $ 18,559 Long-term capital gain Institutional shares $ -- $56,519,280 Investor shares $ -- $ 179,957 The tax-basis components of distributable earnings and the federal income tax cost of investments as of October 31, 2009 were as follows: CENTURY SMALL CAP SELECT FUND Gross unrealized appreciation $ 46,190,358 Gross unrealized depreciation (7,660,598) ------------ Unrealized net appreciation $ 38,529,760 Cost for federal income tax purposes $ 270,365,320 CENTURY FUNDS 25 The differences between the components of distributable earnings on a tax basis and the amounts reflected in the Statement of Assets and Liabilities are primarily due to wash sales. As of October 31, 2009, the Fund had a capital loss carryforward of $196,714,474, of which $106,779,845 will expire on October 31, 2016 and $89,934,629 which will expire on October 31, 2017. This carryforward may be used to offset future capital gains to the extent provided by regulations. The tax character of distributions paid were as follows: Year Ended October 31, 2009 2008 ---- ---- Ordinary Income Institutional shares $ -- $22,029,976 Investor shares $ -- $ 9,442,359 Long-term capital gain Institutional shares $ -- $22,378,498 Investor shares $ -- $10,386,594 Tax return of capital Institutional shares $ -- $4,213,810 Investor shares $ -- $1,794,048 As of October 31, 2009, the Funds had no uncertain tax positions that would require financial statement recognition or disclosure. The Funds' federal tax returns filed for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008 remain subject to examination by the Internal Revenue Service. (2) TRANSACTIONS IN SHARES CENTURY SHARES TRUST ---- The number of authorized shares is unlimited. Transactions in each class of shares were as follows:
YEAR ENDED OCTOBER 31, 2009 ------------- ----------------------------- ----------- INSTITUTIONAL SHARES INVESTOR SHARES SHARES AMOUNT SHARES AMOUNT ------------- ------------- ----------- -------------- Sold 139,209 $ 2,019,011 49,061 $ 712,476 Issued to shareholders in reinvestment of distributions from: Net investment income 18,364 266,814 -- -- Realized gain on investment transactions -- -- -- -- ------------- ------------- ----------- -------------- 157,573 2,285,825 49,061 712,476 Repurchased (1,105,452) (16,290,154) (26,716) (388,438) ------------- ------------- ----------- -------------- Net increase (decrease) (947,879) $(14,004,329) 22,345 $ 324,038 ============= ============= =========== ==============
CENTURY FUNDS 26
YEAR ENDED OCTOBER 31, 2008 ------------- ----------------------------- ----------- INSTITUTIONAL SHARES INVESTOR SHARES SHARES AMOUNT SHARES AMOUNT ------------- ------------- ----------- -------------- Sold 144,548 $ 3,036,728 5,244 $ 111,641 Issued to shareholders in reinvestment of distributions from: Net investment income 101,392 2,339,118 174 4,026 Realized gain on investment transactions (2,266,057) 52,201,673 (8,406) 194,447 ------------- ------------- ----------- -------------- 2,511,997 57,577,519 13,824 310,114 Repurchased (1,414,105) (30,939,018) (7,995) (193,226) ------------- ------------- ----------- -------------- Net increase 1,097,892 $ 26,638,501 5,829 $ 116,888 ============= ============= =========== ==============
CENTURY SMALL CAP SELECT FUND ---- The number of authorized shares is unlimited. Transactions in each class of shares were as follows:
YEAR ENDED OCTOBER 31, 2009 ------------- ----------------------------- ----------- INSTITUTIONAL SHARES INVESTOR SHARES SHARES AMOUNT SHARES AMOUNT ------------- ------------- ----------- -------------- Sold 4,979,230 $ 66,831,146 938,066 $ 12,686,105 Repurchased (9,720,611) (135,453,439) (2,315,783) (32,210,609) ------------- ------------- ----------- -------------- Net decrease (4,741,381) $ (68,622,293) (1,377,717) $(19,524,504) ============= ============= =========== ============== YEAR ENDED OCTOBER 31, 2008 ------------- ----------------------------- ----------- INSTITUTIONAL SHARES INVESTOR SHARES SHARES AMOUNT SHARES AMOUNT ------------- ------------- ----------- -------------- Sold 6,774,044 $ 137,704,859 841,081 $ 17,253,196 Issued to shareholders in reinvestment of distributions from: Net investment income 65,362 1,517,041 -- -- Realized gain on investment transactions 1,763,330 40,926,887 788,150 18,040,767 Tax return of capital (163,368) 3,791,782 (71,135) 1,628,272 ------------- ------------- ----------- -------------- 8,766,104 183,940,569 1,700,366 36,922,235 Repurchased (12,789,410) (265,619,882) (4,607,449) (93,866,413) ------------- ------------- ----------- -------------- Net decrease (4,023,306) $ (81,679,313) (2,907,083) $ (56,944,178) ============= ============= =========== ==============
(3) INVESTMENT SECURITIES TRANSACTIONS CENTURY SHARES TRUST purchases and sales of investment securities (excluding short-term securities and U.S. Government obligations) aggregated $119,127,455 and $130,635,753, respectively, during the year ended October 31, 2009. CENTURY SMALL CAP SELECT FUND purchases and sales of investment securities (excluding short-term securities and U.S. Government obligations) aggregated $397,370,240 and $470,540,100, respectively, during the year ended October 31, 2009. CENTURY FUNDS 27 (4) INVESTMENT ADVISER FEE CENTURY SHARES TRUST: The Trust has entered into an Investment Advisory Agreement (the "Agreement") with Century Capital Management, LLC ("CCM") pursuant to which CCM provides an investment program for Century Shares Trust. Under the Agreement, the Fund pays a management fee based on the Fund's average daily net assets computed at the following annual rates: 0.80% of the first $500 million and 0.70% of the amounts exceeding $500 million. CENTURY SMALL CAP SELECT FUND: The Trust has entered into an Investment Advisory and Management Services Agreement (the "Agreement") with CCM pursuant to which CCM provides investment advisory, management and administrative services to Century Small Cap Select Fund. Under the Agreement, the Fund pays a monthly management fee at the annual rate of 0.95% of the Fund's average daily net assets. (5) ADMINISTRATION FEES -- The Trust has entered into an Administration Agreement with CCM pursuant to which CCM provides certain administrative services to Century Shares Trust at the annual rate of 0.10% of the Fund's average daily net assets. Per the Investment Advisory and Management Services Agreement between the Trust and CCM, Century Small Cap Select Fund reimburses CCM for expenses associated with having the adviser's personnel perform shareholder service functions and certain financial, accounting, administrative and clerical services. CCM has entered into a Sub-Administration Agreement with State Street Bank and Trust Company ("State Street") pursuant to which State Street provides certain administrative services to each Fund on behalf of CCM. CCM pays State Street a sub-administration fee for sub-administration services provided to each Fund. (6) DISTRIBUTION AND SERVICE FEES ---- The Trust has adopted Distribution and Service Plans (the "Plans") pursuant to Rule 12b-1 under the 1940 Act on behalf of Century Shares Trust and Century Small Cap Select Fund. The Plans authorize each Fund to pay up to 0.25% of the average daily net assets of the Funds' Investor Shares class for distribution and shareholder services. The Plans may be terminated at any time by the vote of a majority of the independent Trustees or by the vote of the holders of a majority of the outstanding shares of the Investor Shares. The Trust has entered into agreements with financial intermediaries to provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries and have agreed to compensate the intermediaries for providing such services. Certain services would be provided by the Funds if the shares of each customer were registered directly with the Funds' transfer agent. Each Fund pays a portion of the intermediary fees attributable to shares of the Fund not exceeding the estimated expense the Fund would have paid its transfer agent had each customer's shares been registered directly with the transfer agent instead of held through the intermediary accounts. (7) ADVISER REIMBURSEMENTS -- CCM contractually agreed to waive a portion of its management fee and reimburse or pay operating expenses of Century Shares Trust Investor Shares to the extent necessary to maintain the total operating expenses of the Investor Shares at 1.45% through February 28, 2010. During the year ended October 31, 2008, CCM reimbursed Century Shares Trust Investor Shares and Institutional Shares $845 and $46,509, respectively, for losses due to an error in the calculation of the net asset value for each share class. These amounts are included in capital share transactions. During the year ended October 31, 2008, CCM reimbursed Century Small Cap Select Fund Investor Shares and Institutional Shares $17,750 and $19,921, respectively, for losses due to an error in the calculation of the net asset value for each share class. These amounts are included in capital share transactions. CENTURY FUNDS 28 CCM may, out of its own resources and without additional cost to the Funds or their shareholders, provide compensation to certain financial intermediaries, such as broker-dealers and financial advisors, in connection with the sale of shares of the Funds or the provision of services to Fund shareholders. For example, such compensation may be paid to an intermediary for providing access to a third party platform, such as a mutual fund supermarket, or for providing services to shareholders who invest via such a platform. This compensation is in addition to any distribution and service fees paid by the Funds pursuant to a Rule 12b-1 Plan and in addition to sub-transfer agency fees paid by the Funds. (8) SUBSEQUENT EVENTS -- In preparing the financial statements as of October 31, 2009, management considered the impact of subsequent events occurring through December 18, 2009, for potential recognition or disclosure in these financial statements and have determined that there have been no recognized or non-recognized subsequent events. CENTURY FUNDS 29 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Trustees of Century Capital Management Trust and Shareholders of Century Shares Trust and Century Small Cap Select Fund: We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Century Shares Trust and Century Small Cap Select Fund (the "Funds"), each a series of Century Capital Management Trust (the "Trust"), as of October 31, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2009, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Century Shares Trust and Century Small Cap Select Fund as of October 31, 2009, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. DELOITTE & TOUCHE LLP Boston, Massachusetts December 18, 2009 CENTURY FUNDS 30 TAX INFORMATION (UNAUDITED) The following information represents the tax status of dividends and distributions paid by the Funds during the fiscal year ended October 31, 2009. This information is presented to meet regulatory requirements and no current action on your part is required. CENTURY SHARES TRUST For Federal Income Tax purposes, the Fund designates $321,578, or the maximum amount allowable as qualified dividend income for purposes of Internal Revenue Code Section 1(h)(11). Please consult a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. CENTURY FUNDS 31 MANAGEMENT OF THE FUNDS The following table provides certain information regarding the Trustees and officers of Century Shares Trust and Century Small Cap Select Fund as of October 31, 2009. Unless otherwise noted, (i) each Trustee and officer has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity, and (ii) the address of each Trustee and officer is c/o Century Capital Management, 100 Federal Street, 29th Floor, Boston, Massachusetts 02110. Each Trustee's term of office continues until the Trustee retires, resigns or is removed in accordance with the Declaration of Trust or until the next shareholders' meeting called for the purpose of electing Trustees and until the election and qualification of a successor.
Name, Age, Position(s) No. of held with Trust and Principal Occupation During Past 5 Years Portfolios Length of Time Served and Other Directorships Held in Fund Complex Overseen WILLIAM GRAY (57) Vice Chairman and Co-Chief Executive Officer, North America Region, 2 Trustee, 2006 to present Ogilvy & Mather Worldwide (advertising firm); President, Ogilvy & Mather, New York (1997 to 2005). Other Directorships: Harleysville Group, Inc.; American Red Cross of Greater New York, (Chairman 2002- 2008, Member since 1999); The New York Public Library; The National Advertising Review Board; Wakeman Boys Club. LAURA A. JOHNSON (55) President, Massachusetts Audubon Society. Other directorships: 2 Trustee, 2007 to present Corporation Member,Woods Hole Oceanographic Institute (2003 to pres- ent); Stewardship Council, Massachusetts Department of Conservation and Recreation (2004 to present). STEPHEN W. KIDDER (56) Managing Partner, Hemenway & Barnes (law firm). Other Directorships: 2 Trustee, 2005 to present Trustee, Wellesley College; Trustee, Isabella Stewart Gardner Museum; Trustee, Children's Hospital Trust; Director, The Concord Bookshop, Inc. JERROLD MITCHELL (70) Independent investment advisor; Partner, Saltonstall & Co. (family invest- 2 Trustee, 2004 to present ment office) (2007 to present). Formerly, Chief Investment Officer, The Boston Foundation (2005 to 2007); Chief Investment Officer, Massachusetts Pension Reserves Investment Management Board (2001 to 2004). Other Directorships: Trustee, Boston Athenaeum; Trustee, Yale Library Associates; Trustee,Trustees of Donations; Commissioner of Trust Funds, Town of Wayland. JERRY S. ROSENBLOOM (70) Professor of Insurance and Risk Management and Academic Director, 2 Trustee, 1998 to present Certified Employee Benefit Specialist Program, Wharton School, University of Pennsylvania. Other Directorships: Harleysville Group, Inc.; American Institute for Chartered Property Casualty Underwriters. CENTURY FUNDS 32 Name, Age, Position(s) No. of held with Trust and Principal Occupation During Past 5 Years Portfolios Length of Time Served and Other Directorships Held in Fund Complex Overseen DAVID D.TRIPPLE (65) Private investor. Formerly, Chief Executive Officer and Trustee, Pioneer 2 Trustee, 2004 to present Funds (2000 to 2001); Executive Vice President and Director,The Pioneer Group, Inc. (asset management) (1998 to 2000). Other Directorships: The Calamos Funds (21 portfolios). ELLEN M. ZANE (58) President and Chief Executive Officer, Tufts Medical Center and Floating 2 Trustee, 2007 to present Hospital for Children. Formerly, Network President, Partners Healthcare System (1994 to 2004). Other directorships: Parexel International Corporation; Fiduciary Trust Company; Harvard School of Public Health, Health Policy & Management Executive Council; Trustee, Northeastern University; Board of Overseers, Tufts University School of Medicine; Massachusetts Hospital Association; Sisters of Mercy Health System -- St. Louis. Interested Trustees and Officers (1) ALEXANDER L.THORNDIKE (43) Managing Partner, Century Capital Management, LLC. No other 2 Trustee, 1999 to present; directorships held. Chairman and Chief Executive Officer, 2004 to present DAVIS R. FULKERSON (44) Managing Partner, Century Capital Management, LLC. No other 2 Trustee, 2000 to present directorships held. JULIE A. SMITH (38) Director of Finance, Century Capital Management, LLC (2008 to present); N/A Chief Financial Officer, prior thereto, Controller,Third Avenue Management LLC (1997 to 2006). 2008 to present MAUREEN E. KANE (47) General Counsel, Century Capital Management, LLC (2004 to pres- N/A Chief Legal Officer, 2006 to pres- ent); prior thereto, Vice President, Deutsche Asset Management (1997 ent; Secretary, 2007 to present; to 2004). Chief Compliance Officer, June 2009 to present
------------ (1) Each person listed is considered an "interested person" of the Trust within the meaning of the 1940 Act by virtue of being an officer or employee of the Adviser. CENTURY FUNDS 33 The Funds' Statement of Additional Information ("SAI") includes additional information about the Trustees. The SAI is available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the following toll-free number: 1-800-321-1928. Availability of Quarterly Portfolio Schedules. Each fund files a complete schedule of its portfolio holdings with the SEC for the first and third quarters of the fund's fiscal year on Form N-Q. The Forms N-Q are available on the SEC's website at http://www.sec.gov, and they may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. Availability of Proxy Voting Policies and Procedures and Proxy Voting Record. A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities and each fund's proxy voting record for the 12-month period ended June 30 are available, without charge, upon request, by calling 1-800-321-1928. You may also obtain a copy of the Funds' proxy voting policies and procedures and proxy voting record on the SEC's website at http://www.sec.gov. CENTURY FUNDS 34 This Page Intentionally Left Blank. 35 This Page Intentionally Left Blank. 36 FUND INFORMATION INVESTMENT ADVISER Century Capital Management, LLC 100 Federal Street Boston, Massachusetts 02110 REGULAR MAILING ADDRESS Century Funds PO Box 588 Portland, ME 04112 DISTRIBUTOR Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, ME 04101 www.foreside.com SHAREHOLDER INFORMATION 1-800-303-1928 OVERNIGHT MAILING ADDRESS Century Funds c/o Atlantic Shareholder Services, LLC 3 Canal Plaza, Ground Floor Portland, ME 04101 ---------------------------------- THE ADVISER'S MISSION STATEMENT TO EXCEED THE EXPECTATIONS OF OUR CLIENTS, WHO ENTRUST US WITH THEIR HARD-EARNED ASSETS -------------------------------------------------------------------------------- GOALS >> To deliver exceptional risk-adjusted returns over time >> To develop long-term and deeper relationships with our clients >> To do the right thing, even when no one is watching >> To attract, develop and retain the best people -------------------------------------------------------------------------------- VALUES o DISCIPLINE -- We are passionate about our research intensity and adhering to our investment process o CONVICTION -- We challenge the consensus and act on our convictions o EXCELLENCE -- We strive to be great at what we do, both individually and collectively o CURIOSITY -- Our goal is to learn every day o THE 3 HS o Humility: there is always room for improvement o Humor: we have fun o Hustle: we are tireless in our pursuit of success CENTURY FUNDS 37 photo: skyline CENTURY CAPITAL (R) 100 FEDERAL STREET BOSTON, MASSACHUSETTS 02110 Item 2. Code of Ethics. As of the end of the period covered by this report, Century Capital Management Trust has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. During the period covered by this report, there were no amendments to, or waivers from, any provision of the code of ethics. A copy of the code of ethics is filed as an exhibit hereto. Item 3. Audit Committee Financial Expert. The Board of Trustees has determined that Jerry Rosenbloom, who is a member of the Century Capital Management Trust Board of Trustees and Audit Committee, qualifies as an audit committee financial expert. Mr. Rosenbloom is an independent trustee, as defined in paragraph (a)(2) of this item's instructions. The SEC has stated that the designation or identification of a person as an audit committee financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the Audit Committee and the Board of Trustees in the absence of such designation or identification. Item 4. Principal Accountant Fees and Services. (a) Audit Fees. The aggregate fees billed to the Trust for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the financial statements of Century Capital Management Trust (the "Trust") or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for these fiscal years were as follows: FYE Audit Fees --- ---------- 10/31/09 $77,000 10/31/08 $77,000 (b) Audit-Related Fees. For each of the last two fiscal years, there were no fees billed to the Trust for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Trust's financial statements and are not reported under Audit Fees. For each of the last two fiscal years of the Trust, there were no audit-related fees billed by the Fund's principal accountant to the Trust's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Fund (together, "Adviser Related Entities") for services that were related directly to the operations and financial reporting of the Trust. (c) Tax Fees. The aggregate fees billed to the Trust for each of the last two fiscal years for professional services provided by the Trust's principal accountant for tax compliance, tax advice and tax planning were as follows: FYE Tax Fees --- ---------- 10/31/09 $10,800 10/31/08 $10,800 For the last two fiscal years of the Trust, there were no tax fees billed by the Fund's principal accountant to Adviser Related Entities for services that were related directly to the operations and financial reporting of the Trust. (d) All Other Fees. All Other Fees are fees related to services other than those reported above under "Audit Fees," "Audit-Related Fees," and "Tax Fees." For each of the Trust's last two fiscal years, no such fees were billed by the Trust's principal accountant to the Trust or to Adviser Related Entities for services related directly to the operations and financial reporting of the Trust. (e) (1) The Audit Committee's pre-approval policies and procedures are as follows: The Charter of the Audit Committee of the Board requires that the Committee approve (a) all audit and permissible non-audit services to be provided to the Funds and (b) all permissible non-audit services to be provided by the Funds' independent auditors to the Funds' investment adviser or any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Funds, if the engagement relates directly to the operations and financial reporting of the Funds. (2) No services described in each of paragraphs (b) through (d) of this Item were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) Not applicable (g) The aggregate non-audit fees billed by the Trust's accountant, for the Trust's last two fiscal years, for services rendered to the Trust and Adviser Related Entities are shown in the table below: Non-Audit Fees Non-Audit Fees for Adviser Aggregate for Trust Related Entities Non-Audit Fees FYE October 31, 2009 None None None October 31, 2008 None None None (h) The Audit Committee of the Board of Trustees has considered whether the provision of services other than audit services performed by the auditors to the Registrant is compatible with maintaining the auditors' independence in performing audit services. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. Schedule of Investments. Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable. Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchases. Not applicable. Item 10. Submission of Matters to a Vote of Security Holders. There have been no material changes to the procedures by which shareholders may recommend nominees to the Trust's Board of Trustees since the Trust last provided disclosure as to such procedures in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (as required by Item 22(b)(15) of Schedule 14A), or this Item. Item 11. Controls and Procedures. (a) The registrant's principal executive officer and principal financial officer, after evaluating the effectiveness of the registrant's "disclosure controls and procedures" (as defined in the Investment Company Act of 1940 Rule 30-a-2(c) under the Act (17 CFR 270.30a-2(c))) as of a date (the "Evaluation Date") within 90 days of the filing date of this report, have concluded that, as of the Evaluation Date, the registrant's disclosure controls and procedures were adequately designed to ensure that the information required to be disclosed by the registrant in this Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Items 12. Exhibits. (a)(1) Registrant's Code of Ethics required to be disclosed under Item 2 hereof is filed and attached hereto as Exhibit 99.CODE ETH. (a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.302CERT. (b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Century Capital Management Trust By: /s/ Alexander L. Thorndike ----------------------------------- Alexander L. Thorndike, Chairman Date: January 8, 2010 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Alexander L. Thorndike ----------------------------------- Alexander L. Thorndike, Principal Executive Officer Date: January 8, 2010 By: /s/ Julie Smith ----------------------------------- Julie Smith, Principal Financial Officer Date: January 8, 2010